Effect of stochastic income and credit cards on Friedman's rule.: An article from: Atlantic Economic Journal

This digital document is an article from Atlantic Economic Journal, published by Atlantic Economic Society on June 1, 1995. The length of the article is 597 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: A 1989 article found that an autoregressive and aggregate shock to an economy with uncertainty will cause a violation of Friedman's rule. This rule states that deflation should not exceed the rate of time preference. The robustness of the 1989 article's result is tested with the introduction of credit cards to replace the required cash-in-advance assumption. The new model involves payment for goods using leftover money from previous periods. Given that utility is maximized through consumption on bills payment, the money market clearing outcome and the optimal rate of return on money are derived.

Citation Details
Title: Effect of stochastic income and credit cards on Friedman's rule.
Author: Nivedita Mukherji
Publication:Atlantic Economic Journal (Refereed)
Date: June 1, 1995
Publisher: Atlantic Economic Society
Volume: v23 Issue: n2 Page: p147(1)

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